I think I am pleased to get 30th June out of the way.
What our XJO has done this past week is almost unbelieveable. Any wonder that I often refer to a “silent hand”. Having nudged the uptrend, we then rallied back up to the downtrend. With a strong finish in New York on Friday, there must be a good chance we will break the downtrend once again.
Just look at the weekly chart (semi-log) of the S&P. I had been thinking that we would have more of a correction but one week seems to be all it has time for at the moment. I won’t stand in front of it, but it can afford to correct further without ruining the pattern.
I included the daily chart of the Dow Jones Transportation Index – the Trannies – during the week. Today I want to show the weekly close (again semi-log) of this sector. As mentioned previously, I put quite a bit of importance on this group because for the economy to be growing we need “stuff” to be moving. This upturn over the past month or so would tend to suggest that things are picking up. Overhead resistance here so might have to be a bit patient over coming weeks. But isn’t the uptrend amazing. Doesn’t matter how many years I have been plotting my charts, I still can’t believe just how the markets know where such a line is.
Gold came back to the support at $1900 I have mentioned previously. This week I want to come back to an old favourite chart DUST – 2 times bear. Here we see that over the past couple of months it has formed a fairly weak uptrend while the price of gold was correcting. When this breaks down, it will probably herald the next move up in gold.
For a different look at gold, our Gold Index – weekly semi-log. Just look how current trading is sitting on the longer-term downtrend. Appears to be just waiting for something to happen.
Currencies are a bit of a mess at the moment. The first chart here is DXY – the dollar index. On the lower level, the Chinese yuan. While the dollar hasn’t done much over the past three months, the yuan has been very weak. What is it telling us?
UNG – I have included the chart recently looking for a turnaround in this market. Then this headline: Natural Gas Prices in Europe Surge 39% in June
As I mentioned last week, once we have a turnaround here, I believe it will signal an improvement in the whole sector.
And now one of the most frustrating charts I have at the moment – the daily close of zinc. When I last included this chart I mentioned how at the beginning of the year, this was seen as one of the crucial commodities, but the price has continued in its well-defined downtrend. I thought it was looking slightly better at the end of the week.
Been a slight uptick in coal prices as well.
Saw this headline during the week. I have mentioned a few times that I think the uranium situation is looking very interesting.
(20min delay)